Jakarta. Renewable Energy Certificates (RECs) offer significant benefits for three key stakeholders: renewable energy power plant developers, REC buyers, and the government.

Fajar Wibhiyadi, President Director of the Indonesia Commodity & Derivatives Exchange (ICDX), said RECs provide added value for renewable energy developers and act as an incentive to expand clean energy projects.

“For buyers, RECs help achieve sustainability goals, enhance brand reputation, and ensure compliance with environmental standards,” Fajar said during the Energy and Mineral Festival in Jakarta on Wednesday.

For the government, RECs can serve as a stimulus to accelerate the national renewable energy target. Each 1 megawatt hour (MWh) of electricity produced from renewable sources can be converted into 1 REC, creating additional value beyond electricity sales.

“With RECs, we hope more businesses will be encouraged to invest in renewable energy, ultimately boosting national capacity,” he said.

Under the National Energy Plan (RUEN), Indonesia targets a 23 percent renewable energy share in its energy mix by 2025. RECs are also seen as a potential tool to support the country’s response to the European Union’s Carbon Border Adjustment Mechanism (CBAM).

In the 2025–2034 Electricity Supply Business Plan (RUPTL), the government aims for 61 percent of new power capacity to come from renewable sources. The 2024 National Electricity General Plan (RUKN) projects total installed capacity to reach 443 gigawatts (GW) by 2060, driven by solar (109.4 GW), hydro (70.5 GW), wind (73.2 GW), and geothermal (22.7 GW) energy.

RECs certify electricity generated from renewable sources, in accordance with national and/or international standards. One REC equals 1 MWh of renewable energy and plays a key role in the accounting, tracking, and recognition of clean energy usage. RECs are accepted by global frameworks such as the Greenhouse Gas Protocol (GHGP), Science Based Targets initiative (SBTi), RE100, and CDP, serving as a mechanism for disclosing renewable energy use under Scope 2 emissions.

As the government-appointed exchange operator, ICDX has developed trading technology and infrastructure to support REC transactions. The platform is integrated with international registry systems, including Evident’s I-REC and APX’s TIGRs, ensuring compliance with global standards.